It's because they underwrite the risk differently. In the UK, it's driver led, but in other countries, it's about the vehicle. In Australia, the insurance is purchased with the road fund license, and anyone can drive. In America, they don't have compulsory insurance - it is done on a state by state basis. Europe does operate on a similar basis though, as the 2009 EU directives mandate that from country to country in the EU, that they work to the same statue under the insurance directives (the main reason stems from the 1933 Road Traffic Act for third party risk): ec.europa.eu/info/business-economy-euro/banking-an...n